UAE has attracted much attention over the past years, with foreign investment in the country on the rise. It is essential to be well-versed in the laws behind property ownership for foreigners in the UAE.
Property ownership for expats in the UAE is divided into 2 types – freehold and leasehold:
Leasehold ownership: If you buy a property on a leasehold basis, you will get property rights for a fixed term, which is a maximum of 99 years. However, you will not own the property’s land. The ultimate ownership of the land goes back to the freeholder.
Freehold ownership: Those who buy property on a freehold basis enjoy absolute ownership of the property and the land it’s built on. The property can then be sold, leased or occupied at the owner’s will.
Now, let’s look at the foreign property ownership laws for each emirate:
Dubai
Both expats and foreign citizens (non-UAE residents) can own freehold property in Dubai. Upon buying property, the title deeds are issued by the Dubai Land Department.
Abu Dhabi
Freehold property ownership in Abu Dhabi
Foreigners can own freehold property in Abu Dhabi in the following areas:
Yas Island
Al Reem Island
Saadiyat Island
Maryah Island
Al Raha Beach
Al Reef
Masdar City
Lulu Island
Sayh Al Sedairah
Leasehold property ownership in Abu Dhabi
Expats are allowed only to own apartments, townhouses and villas in Abu Dhabi (not land). Four significant systems govern the Abu Dhabi Leasehold property market. They are as follows:
Mustaha: Mustaha contracts allow foreign nationals to invest, lease, alter or sell a plot of land belonging to a third party for up to 50 years. This contract can be renewed by both parties’ mutual consent for up to 50 years.
Ownership Deeds: Expats are given ownership deeds of residential units for 99 years. The land is not included in this.
Usufruct: Expatriates can own residential units for 99 years. The usufruct contract entitles the owner to enjoy the use of the property and its facilities without being able to change it.
Long-term lease: Long-term leases are given for an initial period, of more than 25 years.
Sharjah
Foreign nationals and expats in the UAE do not have the right to own, but rather have “usufruct” rights for a maximum of 100 years. This usufruct contract should be registered with the Sharjah Real Estate Registration Department (SRERD) and allows the owner to use the property and its facilities without being able to change it.
The usufruct rights are given only to areas specified by the Government of Sharjah for this specific purpose, and are given after approval is obtained from the Ruler of Sharjah.
Ajman, Ras Al Khaimah and Umm Al Quwain
Foreigners can make leasehold and freehold purchases in Ras Al Khaimah, Ajman and Umm Al Quwain.
In Ajman, the majority of available properties are available on a leasehold basis. Only 3 areas in Ajman are Ajman exclusively held for UAE citizens:
- Mushairfeh
- Al Hamedya
- Al Jurf
Ras Al Khaimah has multiple freehold areas, which are proving to be quite popular with investors.
In Umm Al Quwain, expatriates and non-GCC nationals can own property (but not the land) in designated investment areas on a leasehold basis, for up to 99 years.
Sources:
- Bayut
- The United Arab Emirates government portal
- Law No. 19 of 2005 Concerning the Regulation of the Real Estate Sector (Abu Dhabi)
- Article 3 of Regulation No. 3 of 2006 Determining Areas for Ownership by Non-Nationals of Real Property in the Emirate of Dubai
- Executive Council Resolution No. 26 of 2014 Regarding the Usufruct of Real Estate Properties in the Emirate of Sharjah
- Amiri Decree No. (7) of The Year 2008 Regarding Acquisition and Registration of Land Ownership In The Emirate of Ajman
- Resolution No. 4 of 2021 on foreign freehold real estate ownership in the Emirate of Umm Al Qaiwain.
- Law no. 11 of 2021 In respect of the Real Estate Register in the Emirate of Ras Al Khaimah
